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G O V E R N A N C E
A N D O R G A N I Z A T I O N

THE RIGHTS OF LVMH SHAREHOLDERS ARE PROTECTED
BY LAW AND THE PRINCIPLES OF CORPORATE GOVERNANCE

WHICH GOVERN THE WAY THE GROUP OPERATES.

LVMH s Board of Directors is the strategic body of the
Company which is primarily responsible for enhancing
the Company s value and protecting its corporate inter-
ests. It endeavors to promote long-term value creation by
the Company, while notably accounting for the social and
environmental issues pertaining to its activities. Its principle
assignments are to approve the Company s and the
Group s major strategies and supervise their implemen-
tation; to verify the fair and accurate presentation of
information about the Company and the Group; to pro-
tect its corporate assets; and to ensure that core business
risks are fully accounted for in the management of the
Company. It also makes sure that systems are in place to
prevent corruption and influence peddling, and policies are
implemented to ensure non-discrimination and diversity
notably gender equality within the executive bodies.
Lastly, it acts as guarantor with respect to the rights of
each of its shareholders and ensures that shareholders
fulfill all of their duties.
In 2018, the Board of Directors approved the annual and
interim parent company and consolidated financial state-
ments, monitored quarterly business activity, and gave
its opinion on: the Group s key strategic directions and
decisions, its budget, compensation of company officers,
the implementation of bonus share and performance
bonus share allocation plans, and the implementation of
the share buyback plan. Lastly, it approved the plan to
acquire Belmond Group.

There are three committees within the LVMH Board of
Directors:
In 2018, the Performance Audit Committee reviewed
the annual and interim parent company and consolidated
financial statements in conjunction with a detailed analysis
of changes in the Group s activities and scope. The Com-
mittee also worked on the following issues: internal audit;
the Group s internal audit policy and how the financial
markets view the Group; the Group s tax situation; and
the transition to the new accounting standard, IFRS 16,
from January 1, 2019.
In 2018, the Nominations and Compensation Commit-
tee issued proposals on: the fixed and variable compen-
sation and benefits in kind of the Chairman and Chief
Executive Officer, and the Group Managing Director;
the performance criteria pertaining to their variable com-
pensation and of the respective weightings of these
criteria; the allocation of performance bonus shares to
these two people and the requirement to retain a portion
of the shares that may be definitively allocated to them.
It also provided opinions on the compensation, perfor-
mance bonus shares, and benefits in kind attributed to
certain members of the Board of Directors by the Com-
pany or its subsidiaries. It delivered a favorable opinion on
the appointment of a new female director to replace
another female director who has resigned.
The Ethics and Sustainable Development Committee
ensures compliance with the individual and shared values
on which the Group bases its actions, which are detailed
in the Code of Conduct as well as the other codes and
charters resulting from this code. In 2018, the committee s
work included monitoring the compliance program imple-
mented by the Group in connection with the Sapin 2 Act
and the law on the duty of care for parent companies, in
conjunction with the Ethics & Compliance Director.